6
L E H A V R E
N E W S
J U L Y Le Havre Annual Shareholders
Budget Meeting Recap
Le Havre Owners Corp. held its
annual shareholders’ Budget & Finance
meeting on Thursday, June 29, on the
deck of Pool 2 to introduce and explain
the 2017/18 budget. Approximately
150 shareholders attended. In addition
to the Le Havre Board, Property
Manager Margaret Costello, attorney
Geoffrey Mazel and accountants
Carl Cesarano and Charlie Kotan also
joined the meeting.
LHOC Board President Stanley
Greenberg discussed the 2017/18
maintenance increase of 2.58%. “Other
coops have gotten increases in the 3%,
4% and even 5% range, so our numbers
are pretty low compared to others,” he
said. “On average, we’ve had maintenance
increases of less than 2% for the
last six years.”
Stanley explained the key drivers
behind the new budget. “We have
some ‘big ticket’ items,” he said. “Real
estate taxes are projected to go up 14%,
and labor and payroll will increase
by 3.4%. Water and sewer taxes are
expected to go up by 2.1%.”
Stanley then reviewed many of
the current improvements being done
across the Le Havre property. One
major project is the ongoing cement
work under the porticos, with three
to four buildings being completed
each year. “By the end of this year,
14 buildings will be completed,” he
announced.
He also discussed the planned refurbishment
of the lobbies and hallways of
each building. “This is a big undertaking,”
he said, “and we estimate it will
cost over $1 million.” Improvements
include restoring the marble walls in
the lobbies and replacing the floors,
ceilings and elevator doors, as well
as new carpeting and wallpaper in the
hallways. In addition, apartments will
receive new mailboxes, doorbells and
exterior door handles. The exterior of
each apartment door will be painted
and the laundry room on each floor
will be upgraded. “We’re hoping that
this project will be completed within a
two-year period,” Stanley said.
Stanley also discussed needed reparations
to the property’s seawall, which is
located by Building 32. “We’re talking
to an engineer. The seawall’s been
deteriorating due to all of the storms,”
he explained, “and we’re looking to
shore it up.”
Carl Cesarano returned to the subject
of the budget and elaborated on
the factors that impact the decisions.
He explained, “There are 16 categories
in the budget. Only five of them
were increased, and costs were actually
decreased in seven categories.” He
continued, “Over 85% of costs are really
out of the Board’s or Management’s
control,” which include union wages,
real estate taxes, the underlying coop
mortgage and utilities.
“The good news,” Carl said, “is that
26% of expenses are real estate taxes
6 LEHAVRE COURIER | JULY 2017 | WWW.QNS.COM
and 22% is for the mortgage, both of
which are deductible for shareholders
who itemize their tax returns. So in
total, 48% of expenses are deductible
for shareholders.”
As for decreases in the budget, Carl
said that the weather plays a major part,
and industry projections are for costs
for heat and electricity to decline. “We
are hoping that these prices remain
favorable,” he said.
Carl also informed the audience
that NYC issued its Price Index of
Operating Costs in April and that
this document is available to the
public (www.nycrgb.org). It states
that NYC’s projected cost increases
for the fiscal year is 4.4%. “So,” Carl
said, “we did even better than Mr.
DiBlasio.”
Stanley thanked Carl, the Board and
the members of the Le Havre Budget
Committee, Christine Backel, Jon
Rodnon, and Helma Reid.
Shareholders arrive early to claim a seat
Board President Stanley Greenberg
addresses Le Havre shareholders
l-r: LHOC Accountant Carl Cesarano; Board Member Judy Densky; LHOC Attorney
Geoffrey Mazel; Treasurer Ray Bergen; President Stanley Greenberg; Vice President
Steve Young; Board Member Mitch Breidbart; Board Member Penni Nussbaum; Board
Member Tom Affratato
